Business chiefs have expressed anxiety about the possible emergence of political instability if the looming general election fails to produce a decisive result.
Amid increasing speculation over the timing of the poll, corporate lobby group Ibec publishes a “business manifesto” today in which it calls on all candidates to embrace ambitious economic programmes.
Ibec chief executive Danny McCoy, who said the body was non-partisan in respect of the election, said the question of stability was foremost in the minds of Irish and international business leaders.
“The timeliness of this is to say stability is important but, you know what, what is equally important is ambition. It’s like a triathlon: we’re out of the water, self-congratulatory about not drowning instead of getting up on the bike, standing looking back at the water.”
The case of Syriza in Greece was salutary, Mr McCoy said. Talks on the terms of Britain’s EU relationship ahead of the referendum there on EU membership could have big implications for Ireland, he added.
“In the last year-and-a-half political stability has been foremost in peoples’ mind because of observation of some of the kind of noisier things that have been happening in Ireland around Irish Water and the anti-austerity [protests] but probably more fundamentally looking at Syriza and even the UK.
Populist
“When you rob Peter to pay Paul you generally can rely on the support of Paul but it’s Peter you’ve got to convince on the merits of the scheme. That basic point was lost on Syriza.
“You can say: ‘We’re populist. We don’t have to pay.’
But the people who actually lend the money will make the decision. So I think the Syriza experience was extreme naivety of how the world works and there’ll be a danger that some of that populist rhetoric and naivety would permeate the Irish discussion.
“I think we’re much more practical and the silent majority realises that the austerity was necessary but that austerity is over now.”
The group’s manifesto calls for an overhaul of the tax code, saying lower taxes on work and more taxes based on user charges support economic growth.
Capital plan
Ibec argues the Government’s new capital plan is too small. While the official plan assumes €27 billion in exchequer funding, Mr McCoy said a €50 billion programme was needed.
“The next government should double the investment in infrastructure to 4 per cent of GDP by 2020 and launch a new Atlantic Cities plan to ensure future growth doesn’t gravitate to the east coast.”
Of Britain’s EU talks, he said the country was likely to secure legal opt-outs instead of changes to European treaties and that Ireland would need flexibility if such opt-outs meant Britain was excluded from moves to harmonise corporate taxation systems, labour market rules or working time directives.
